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North Carolina has become the latest state to put a significant sports-betting tax hike on the table, with lawmakers expected to vote Thursday (April 17) to progress the legislation.
Senate leaders put forward their proposed budget this week, which includes a plan to double the states sports-betting tax from 18 percent to 36 percent.
The increase would see North Carolina impose one of the highest tax rates in the U.S. for any market served by multiple operators, with the additional tax revenue earmarked to provide more funding to state universities.
It's our feeling that the success of the sports wagering program itself is something that has inured to the benefit of many of the campuses, and we wanted to extend it to other campuses, North Carolina Senate President Phil Berger said.
received a second reading vote on the Senate floor on Wednesday and, with a significant Republican majority, the budget measure is expected to receive a favorable vote and clear the chamber Thursday.
That seems set to trigger further negotiations on whether a sports-betting tax increase is included in a final budget law due to be enacted before the new fiscal year begins on July 1.
Leaders of North Carolina's House of Representatives have yet to release their own budget plan, while Democratic Governor Josh Steins executive budget proposal, released in March, did not include a tax hike for sports betting.
Only New York at 51 percent and Illinois with a 40 percent top tax rate would have higher rates than North Carolina in the event the Senate budget plan passes, with Pennsylvania also applying a 36 percent headline rate but allowing promotional deductions.
North Carolina lawmakers are not alone in pushing for a sports-betting tax hike, although the Tar Heel State is the first in 2025 to see a proposed tax increase come from a legislative budget proposal rather than being initiated by the states governor.
Maryland Governor Wes Moore, Ohio Governor Mike DeWine and New Jersey Governor Phil Murphy all proposed major sports-betting tax hikes as part of their executive budget proposals earlier this year.
In Marylands case, where the existing tax rate is 15 percent, Moores proposal to raise it to 30 percent was whittled down in budget negotiations to a more modest 20 percent when a final budget law passed both chambers earlier this month. The budget package now awaits Moores signature.
Ohio House lawmakers, on the other hand, fully removed DeWines proposal for a second tax hike in three years that would have raised the rate from 20 percent to 40 percent, passing their version of a budget last week with no further sports-betting tax increase.
Murphys proposed increase remains pending in New Jersey, as lawmakers have yet to fully take up the budget process for 2025. Murphy did not mention the topic during a speech to industry leaders Wednesday at the East Coast Gaming Congress in Atlantic City.
